navitas investor day… · 2018-09-20 · and capital employed disciplined capital expenditure...

21 September 2018

255 Elizabeth Street, Sydney, NSW 2000

Navitas Investor Day

This document has been prepared by Navitas Limited ABN 69 109 613 309 (Navitas or the Company). The material contained in this document is a presentation of general information in

summary format about the Navitas Group’s activities current as at the date of this document (21 September 2018). It does not purport to be complete and should be read in conjunction

with other Navitas announcements made to the ASX and available at www.navitas.com or www.asx.com. You should not rely upon this document as advice for investment purposes as it

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An investment in Navitas shares is subject to risks, a number of which are described in the “Risks” section of Navitas’ Operating and Financial Review, which is set out in Navitas’ Full Year

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Navitas Investor Day - 21 Sept 2018

Disclaimer

http://www.navitas.com/

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http://www/

http://www.asx.com/

David Buckingham

Navitas Group CEO and Managing Director


Navitas CEO Welcome

CEO WELCOME

FIT FOR GROWTH

GROW THE CORE CAREERS AND INDUSTRY

UNIVERSITY PARTNERSHIPS TRANSFORMATION PARTNER

FINAL COMMENTS

Our purpose – providing life-changing opportunities to learn


Our company - a breadth of assets


120

COLLEGES

38 UNIVERSITY

PARTNERSHIPS

PRESENCE IN

33 COUNTRIES

9 UNIVERSITY

PRODUCT LINES

80,000

LEARNERS

8 STUDENT

FACING BRANDS

$1.6B MARKET

CAPITALISATION

OVER 7,000

EMPLOYEES

We operate in attractive markets

Source: OECD; Unesco; Nous Group

2.1

2.9

3.7

4.6

201520102000 2005

+5.4%

Global international

students (million)

The number of

international students

is expected to reach

7 – 8.5m by 2030

0.1

0.2

0.20.3

0.4

20172000 2005 2010 2015

+7.1%

Australian international

student enrolments (million)

Australia has captured share

from other destination

countries


With a positive future outlook

Sources : HolonIQ, Goldman Sachs, GSV, IBS Capital, Citi, BASA, Wittgenstein Centre

1. Includes Oceania; 2. HolonIQ Education Index; 3. S&P Global 1200 Healthcare index

3

5

10

2000 2015 2030

+4.2%

+4.5%

Global education and training expenditure

(USD trillion)

Population with post secondary education

(2015 2030, millions)

Asia1

Africa

Latin America

North America

Europe

+370m

62% 11%

10%

9%

8%

8x 3xSoftware market

Media & Ent.Industry

To meet Higher Education demand….

2 Universities need to be built every day, for the next 20 years

To place education expenditure in context….

Significant upside for private

education providers

ListedCos2

Market Market Listed Cos3

$150B

$5T

$10T

$5T

3%

50%

Education

We believe that the private sector will play an increasingly important role in the changes to the Higher Education sector


vs. Health

We believe that education will need to adapt Themes for Higher

Education in 2025

Students will choose providers that offer the

best employment options and RoI

Employers value skills accumulation over

qualification accumulation

Students demand

a university alternative

Traditional degree

disaggregation

1.1bn borderless

learner opportunities

available

Public Private

Partnerships will play

a key role in

university reform

Learning will become

blended, self paced, personalised

EdTech companies will play an increasing

role enabling Higher Education delivery

Digital

Demographic shifts

Student expectations

Labour challenges


Financial constraints

Economic transformation

Creating opportunities for Navitas

How we plan to execute our longer term strategy


Improve the effectiveness of our core

businesses and build new partnerships and

markets with a broader product range

GROW THE CORE EXPAND THE CORELEADING THE FUTURE OF

HIGHER EDUCATION

Become the trusted partner of choice to help universities

navigate through change and respond to opportunities

Deliver disruptive and relevant global education

through digital

Leverage our capabilities to be a world leader in the

delivery of education

1

2

3

David Buckingham

Navitas Group

CEO and

Managing Director

Phil Mirams

Chief Financial Officer,

Navitas Group

Scott Jones

CEO, Careers and

Industry Division

Bev Hudson

CEO, University

PartnershipsAustralasia

Division

Iain Rothwell

Chief Commercial Officer,

Navitas Group

David Buckingham

Navitas Group

CEO and

Managing Director

Our speakers and agenda

WELCOME GROW AND EXPAND THE CORE FINAL COMMENTS FIT FOR GROWTH

9.00 – 9.15 9.15 – 9.45 9.45 – 10.15 10.30 – 11.00 11.00 – 11.30 11.30 – 12.00

Navitas Investor Day - 21 Sept 2018 Page

10

Break

Phil Mirams

Navitas Chief Financial Officer

Ensuring that Navitas

is fit for growth

CEO WELCOME

FIT FOR GROWTH



FINAL COMMENTS


11

Review of business portfolio

relative to growth potential

and capital employed

Disciplined capital

expenditure leaving room for

growth investment

Reform our corporate support

model and cost base

Transform Navitas IT and digitize

the student experience

Delivering the building blocks to be fit for growth


12

Decision made to

rationalise the C&I

portfolio in FY18

$124m of charges included

in FY18 financial results

Further $5m expected in

redundancy and merger

costs in FY19 in addition to

teach out costs

Improve margin in continuing

operations (~20% EBITDA margin)

Focus on growth in evolving markets

Reduction in working capital demands

(stronger cashflow generation)

Expansion of product offering

• Slow US accreditation environment

• Poor return on capital profile of US business

• Regulatory funding changes in Australia

• Ability to grow and reach scale in specific locations

• Close LA and San Jose operations

• Investigate divestment of our US SAE business

• Closure of sub scale operations in Europe

• Close or divest Health Skills Australia (HSA)

• Conversion to license model in Indonesia

• Closures well underway

• In negotiations to divest two HSA businesses

• Appointing US advisor to run SAE US sale process

We completed a review of the Navitas portfolio

DRIVERS

IMPACT

STATUS


13

Sustaining capex at much lower level

11 11

20

FY18 (A)

20

FY16 (A)FY10 (A) FY17 (A)FY11 (A) FY13 (A)FY12 (A) FY20 (F)FY14 (A) FY19 (F)FY15 (A)

25

37

44

82

21

Group 255 Elizabeth StreetSAE 255 Elizabeth Street Lease Incentives

Capital expenditure ($m)

Excludes capex for growth

initiatives:

- Digital improvements

- Murdoch Dubai

- New partnerships


14

Sustaining capex at ~$20m

Shared services

established in

2017

Continuously improving corporate support model

Data quality & integrity

Workflow solutions

Productivity & effectiveness

Automation opportunities

Optimal operating model

Project execution

Align to strategy

Develop service metrics

Track & monitor

Agree KPIs

Cost to deliver

Regional relativity

Shared Services Resource Allocation Benchmarking Cost Management

Review of Corporate Support Model


15

Prioritisation

Governance

Projects underway to upgrade our systems capability

In

Place

2018

2020

A secure cloud

environment with

data security

controls

Learning

Management System

deployed across all

Navitas colleges

A reporting and

analytics platform

A student management

ecosystem built upon

Salesforce, Studylink and

Navigate (developed in-house)

• Secure and flexible infrastructure to

respond to the ever-increasing

information security threats

• Linking the data between all systems so

that a holistic, real-time view of any

student can be achieved

• Providing the best learning experience

for students

• Boosting productivity

• Improving the student experience with a

digital and mobile focus

Integrated HR systems


16

2019

A collaboration platform

Digitalisation – a student-driven iterative approach

Delivering superior student experiences by transforming digital touchpoints across the end-to-end journeys of our students.

Long term goals

Uplifting digital capabilities

and building a culture of

innovation at Navitas

Scale

Delivering digital innovations that

improve the day-to-day experiences

of our students around the world

Immersion and idea

generation

Detailed discovery work with

students, staff and other subject

matter experts

Validation

Prototyping and user testing of

concepts showing most

potential to deliver value to

students and Navitas

1. 2. 3. 4.


17

Scott Jones

CEO Careers and Industry

Our path to growth:

Careers and Industry

CEO WELCOME

FIT FOR GROWTH



FINAL COMMENTS


18

The Careers and Industry business today

CAREERS & INDUSTRY


19

% of total C&I revenue

1,110 Staff

49 campuses

10,000 Students

CREATIVE (SAE)

57%

HUMAN (ACAP)

200 Staff

4 Colleges

3,900 Students

17%

GOVT

SERVICES &

EMPLOYMENT

50 Staff

> 30 Sites

13,900 Clients

21%

LEADERSHIP

& MANAGEMENT

100 Staff

Largely online

5,000 Clients

4%

% of revenue based on continuing C&I business

Recent portfolio review has refocused the business

Proven core

products and

geographies

Government

Services/ WIL

and evolving

ACAPoffering

Digitisation

of content


20

Rationalisation

• SAE US Businesses

• Health Skills Australia (HSA)

• Indonesia and UK

Expansion opportunities

• Canada

• Europe

• Australasia

Focus on product and delivery

Locations Business

Models

Growth Returns

Products Regulation

The continuing business has demonstrated margin improvement


21

C&I Revenue ($m) C&I EBITDA ($m)

Continuing business revenue has grown across the period

However, FY17 and FY18 were impacted by:

• Changes in VET funding in Australia

• The closure of some campuses in Europe (Ljubljana, Rotterdam,

Istanbul) and Singapore.

Continuing business EBITDA margin has expanded from 14.2%

(FY14) to 18.9%, driven by:

• Efficiencies realised through the creation of C&I from the merger

of PEP and SAE divisions

• Cost saving initiatives, including the closure of some non-core

campuses

FY18FY14

368

FY15 FY16 FY17

314

348375

318

Contribution from closed AMEP regions

Contribution from SAE USA

Continuing business performance

FY14 FY15 FY18FY16 FY17

54

45 48

61

46

2% CAGR 10% CAGR

Note: All historical figures exclude ELICOS businesses which were transitioned to

University Partnerships from PEP division from 1 July 2016

The path to new growth opportunities


22

Potential future

business


Digital products and platforms

Transformation

Not to scale

Current business

Product expansion

New markets

Product expansion:

Changing landscape opening up opportunities


23

Environmental shifts

• Mega trends such as aging

populations, economic growth in

emerging economies

• Budget pressures: Higher Education

facing decline in public funding, VET

funding

• Changing face of jobs (4th Industrial

Revolution, more freelancers)

• Increasing regulation

• Technological advances

Changing industry demands

• Life long learning for freelancers, older

learners, non ‘traditional’ learning routes

• Growing B2B demand for in-work upskilling

• Mobile, social, interactive access

• Workforce technology developments

demanding practical training options

• Need to address the skills mismatch

Product development

• Unaccredited courses

• Micro credentialing

• Licensing

• B2B

• Digitisation

• Work integrated learning (WIL)

New markets:

Specific markets where growth is available


24

Canada

• Existing Canada foothold

(acquired in 2017)

• Creative industry large and growing

• Greater regulatory equivalence

across providers – private and state

• Faster route to new product

accreditation

• Highly sought after destination for

international students

• Open immigration policies

Europe

• Opportunity for expansion in France,

backed by strong market research,

particularly for gaming and film

products

• New or relocated campuses in

Germany, Switzerland and Austria

creating volume growth

• Opportunity for growth in the

attractive UK market where creative

industry is strong

Australasia

• Expansion of ACAP into Perth

• ASAM product growth in home

market still maturing

• Exploring further opportunities to

expand ACAP

• Tendering for new government

service contracts

New ways of interacting

T&L platforms

Student acquisition

Digital products and platforms:Enabling greater access to digital services

The Digital Strategy will include a review of

3 customer facing dimensions

Each will require specialist expertise

outside of BAU but will leverage the ASAM

online delivery success

Content:

• Student apps

• Artificial Intelligence (AI)

Front-end:

• Websites

• Landing pages

• Online applications

Delivery Platforms:

• Online delivery

• Synchronous learning

• Instructional design


25

Morning tea

Page

26


27

Bev Hudson

CEO University Partnerships Australasia

Our path to growth:

University Partnerships

CEO WELCOME

FIT FOR GROWTH



FINAL COMMENTS


28

A broad base of partners and services with operating leverage


29

38UP Colleges and Managed

Campuses operating across ninecountries

33Colleges focused

on pathway programs

2contract models

Established JVs

34

Colleges currently on royalty models

operating at scale

23 Colleges with less than 1,000 EFTSU

40%

15 Colleges with more than 1,000 EFTSU

Grew in FY18

62% 20 Colleges that grew in FY18

have multi-faceted relationships

39%

23 Have a single product relationship (i.e. pathway)

Have multi product relationships15

5

4

Managed campuses

7 New or recently signed Colleges

A clear runway to underlying growth

628

FY15FY14 FY16 FY17 FY18

561

635

575599

7% CAGR

UP Revenue ($m)

Underlying business growing at 7% CAGR on revenue and 10% CAGR on EBITDA (FY14-18)

• FY17 growth adversely impacted by conversion of PIBT to a JV ($17.3m revenue reduction vs pcp)

• FY19 will be impacted 12 months of the conversion of Swansea college to a JV

148

FY14 FY18FY17FY15 FY16

127

147

133 134

Pro forma UP EBITDA1 ($m)

11% CAGR


30

1. Pro forma EBITDA includes share of EBITDA from joint ventures Note: All historical figures include ELICOS businesses which were transitioned to

University Partnerships from PEP division from 1 July 2016

China:• Slowing but still growing

• Higher Ed at 4%

• Increasing opportunities in 2nd tier cities

India, Pakistan & Nepal:• Increasing demand for UG

• New product demand for both UG and PG

• Visa rejections concern in some markets

Philippines, Cambodia & Myanmar:• Cambodia market doubled in past 12 months

• Lower visa rejections across the board

Latin America:• Was predominantly ELICOS

• Increasing demand for pathway for US and

Canada

• Brazil, Colombia, Ecuador and Mexico

opportunities

Expectations of continued growth in student mobility

Source: Deloitte Access Economics; Austrade


31

Geographic diversity – hedge against differing growth

UPA18 colleges

UPNA10 Partnerships

UPE10 colleges

Australia (14 partnerships)• Multi-product relationships

• JV / Royalty mix

• Large relationships

• DIY competition

• Current momentum still positive

• Government change impact unknown

Australasia (4 partnerships)Singapore (1)

• Curtin Managed Campus

UAE (1)

• Murdoch Managed Campus (2019)

New Zealand (1)

• UCIC International pathway

Sri Lanka (1)

• ACBT (ECU Managed Campus)

Canada (2 partnerships)• International pathway focus

• Large programs

• Strong growth (albeit slowing due to increasing caps)

• DIY competition

• Medium term growth expected

• Shock withdrawal of 8K Saudi students

United States (8 partnerships)• International pathway focus

• Two new colleges offer broader Intl. services

• Current growth challenging due to visa regime

• Long term fundamentals are sound

United Kingdom (9 partnerships)• International pathway focus

• ICWS recently moved into a JV

• Current immigration conditions restrictive

• Brexit implications still to be determined

Europe (1 partnership)• Twente International pathway college in pre-

launch

• European market is opening up


32

Continued growth opportunities for the core


33

Potential future

business

Existing University Partnerships

Current business

Increase S&M effectiveness

Mitigate renewal riskRetention

improvements

New partners and / or geographies

Transformation Partner

Program expansion

Not to scale

Increase S&M effectiveness:

Creating best in class Sales and Marketing

New structure to improve

performance and work more

closely with partners

Expanded global coverage. Putting

more sales people closer to our

potential customers

Insight led approach to identifying new

opportunities and entering new

markets

New channels to market

to complement existing business

Digitisation of sales experience to

improve partner and student experience


34

Dedicated Sales & Marketing Academy

to drive performance of our teams

Expanding program

range

• Recognising market trends and expanding product range – building products with University Partners

• Expanding beyond Undergraduate Pathway model

Blending

program sets

Program expansion:

Expanded programs within the pathway product


35

• Building products that link education outcomes with employment

• Integration of English programs into broader offerings

• Expanding transnational offerings

• Expanding value chain and broadening the relationships into new services

Expanding the

development

framework

• Market attractiveness review using intelligence from source country network

• Review of competition, brand positioning and portfolio position in conjunction with University Partners

Global Learning

& Teaching

capability

• Global function driving professional development and best practice sharing

• Detailed understanding of Student Lifecycle to enable early interventions

and support

• Student experience improvement through academic and non academic

support – starts before students leave their homes

Transforming

teaching &

curriculum

• Successful retention pilots run two Colleges. Focus on student and

teacher outcomes including comprehensive teacher training

• Ability to leverage findings on a global scale

Delivering

learning

technologies

• Student management system upgrades: >50% of upgrades complete

• Student technology survey driving future roadmap

Student retention:Improving retention through student and teacher outcomes

> 10%Improvement in pass rates


36

Australasia

2016 2017 2018 2019 2020

• Edith Cowan College - JV

• Eynesbury – University of

Adelaide

• ACBT – Sri Lanka

• Curtin College

• Curtin Singapore

• Deakin University

• Eynesbury – University of SA

• University of Canterbury • University of Newcastle

• La Trobe Melbourne

• Griffith University

Europe

• Anglia Ruskin University

• Swansea Uni.– JV

• University of Hertfordshire

• Robert Gordon University

• Brunel University

• University of Portsmouth

• University of Plymouth

North

America

• University of Manitoba • UMass Dartmouth

• UMass Lowell

• Simon Fraser University

• University of New Hampshire

Mitigate renewal risk:

Structured approach to contract renewals

• Executed 100% of contract renewals post Macquarie

• Most renewals improved our commercial position

• Renewals used as an opportunity to promote transformation benefits/

Insights/ Ventures

• Partnership health continuously monitored

• Contract renewals start early (18+months), Navitas engagement at all levels

• New business models being offered – 4 JVs with 2 under negotiation

• Delivering on promises is the key factor – quality and student outcomes

Contracts successfully renewed Renewal pending


37

Description of opportunitiesLeads that could become

Partnerships in 18-36 mths

Australasia• Exploring new business models using Transformation Partner product suite

• Expanding on existing relationships to leverage new products2

Europe

• European expansion increasingly attractive – countries with supporting HE

metrics (location/ranking/pricing)

• Response to Brexit impact

• Domestic pathway students growing in importance

• Working with high ranked institutions outside of pathways

4

North America

• Internationally attractive student cities

• Working with high ranked institutions outside of pathways

• Exploring new business models using Transformation Partner product suite

2

New partners and / or geographies:

Creating a targeted approach to new opportunities


38

Partner selection criteria :

• Synergistic with existing

partnerships

• Will improve the ranking status of

our portfolio

• Attractive international destination

• New geographical location with

positive HE metrics

• Deployment of the Transformation

Partner strategy

Iain Rothwell

Chief Commercial Officer

Our path to growth:


CEO WELCOME

FIT FOR GROWTH


UNIVERSITY PARTNERSHIPS

TRANSFORMATION PARTNER

FINAL COMMENTS


39

Creating growth that extends out from the core and develops

new opportunities

Navitas Investor Day - 21 Sept 2018Page

40

Potential future

business

New partners and / or geographies

Existing University PartnershipsTransformation Partner

Current business

Increase S&M effectiveness

Mitigate renewal risk

Commercialise existing products

Create or acquire new products

Supported by Navitas Ventures

Retention improvements

Product expansion

Develop new channels to

market

Not to scale

Universities face significant market challenges

Standards & recognition

Accreditation

Retention

Employability

Rankings

21C Skills

Modal delivery

Online programs

Mobile learning

Student UX

Networking

Digital strategy

Participation rates

Internationalisation

Privatisation

Policy settings

Sector funding

Student debt

Pricing & affordability

Infrastructure

Value for money

PoliticalSociety

(HE Sector)

Economic Technological

Across developed markets, universities face

significant challenges…

…and are challenged in their ability to respond to the

forces of change

• Limited global footprint

• Operate in a democratic fashion

• Dependent on government policy

• Dependent on government funding

• Work practices designed to support a complex

academic environment

• Serve a public mission – research and community

• Public responsibility limits risk appetite


41

Navitas is well placed to respond

…and Navitas offers unique capabilities and

experience to capture the opportunity

• Source of international best practice and HE

insights

• Introduce a commercial operation:

• A source of income

• Access to capital and financial leverage

• Flexible employment arrangements

• Commercial acumen

• Operate a global sales and marketing capability

• Strong track record of Teaching and Learning

outcomes

• Closer to employability

Universities are seeking broader relationships with

leading private providers…


42

“The ‘business as usual’ model will not survive in the intensely

competitive times to come”

– Prof. Ian O’Connor, VC of Griffith University

“The current education climate calls for greater synergy between

private education providers and universities”

– Prof. Stephen Parker, ex-VC of University of Canberra

“I think we will see more outsourcing of teaching as universities aim

to be as flexible as possible”

– Prof. Sally Walker, ex-VC of Deakin University

The process we have followed


43

Asked the

questions… …carried out a structured

filtering process…..will formulate a plan

to execute …

• What are the problems faced

by our university partners

that we can resolve?

• What additional products

and services should we

offer?

• How should we offer them?

• Over what timeframe to

deliver to the market?

Plan ExecuteTarget PrioritiseEvaluate

Attractiveness

Ability to execute

Readiness/

maturity

The value to a

university partner

Products and

services

Market entry

options - build/ buy/

partner

Timing and priority

Pricing

Collateral

developed to

support sale

Use existing BD

network

Sale to existing &

new partners

The Transformation Partner approach

Agents

Existing Products

• Pathways

• English services

• Local & offshore

managed campuses

Agents

Existing Products

• Pathways

• English services

• Local & offshore

managed campuses

Current model

based on

international pathway

Future model is

product agnostic

Digital

Direct

Transnational

+New Products

• Direct international

recruitment for partner

• HE pathways to employment

• Online program management

• S&M solutions

• Student success & retention

+


44

New channels

Commercialise existing products

Create or acquire new products

• We have a history of innovation and

product development to meet the

challenges faced by our university

partners

• But there is an opportunity to

leverage these innovations across

our broader university partner

portfolio

• Make these products available to

new partners

Commercialise existing products:

Products already developed but not in a replicable form

Define the

product

Develop a

business model

Develop a sales

strategy

Establish a

pricing model

Develop

collateral

Create

a distinct

sub-brand


45

Commercialising

our existing

product suite

Create or acquire new products :

To meet the needs of our partners and students of the future


46

Online program

management

HE pathways to

employment

Student

success &

retention

Opportunities

• There is significant benefit to maximising the success & retention of students

• Financial benefit if they complete the course

• Increased student satisfaction if they are successful

• Governments & students require greater transparency on completion rates - driving shift

• Greater emphasis on employability by both students & employers

• Focus on workplace skills

• Provides international students with potential to support post-study work rights

• Online delivery of HE courses

• Targets segments of the market not well served by traditional HE

• Underpinned by a similar business model to Navitaspathways – partnership and revenue share Navitas has some of

the capabilities that

are needed in each of

these areas but we will

need further

investment to fully

capture the

opportunities

Transformation Partner strategy expands our addressable market


47

Existing products

to be

commercialised

+

New products to

be developed or

acquired

University

partners

leveraging off

Navitas’

capability to

resolve the

challenges

they face

200 million

students

Students Navitas Universities

Agents

Digital

Transnational

Direct

WHY HOW WHAT

VISION

Support the ideas, people and

companies that will shape the

future of Higher Education

Navitas Ventures enables our transformation

Thought leadership

Incubation

Partnerships

Investment


48

Identify investments to extend Navitas

(i.e. add priority Transformation Partner

product lines)

Make direct investments in

companies to mitigate material risks

or offer material opportunities

David Buckingham

Navitas Group CEO and Managing Director

Final comments

CEO WELCOME

FIT FOR GROWTH



FINAL COMMENTS


49

Taking the business on our next wave of growth

now 2020 2025 and beyond

Meeting the

Student and

Workplace needs

of the future


50

Leading the

future of

Higher

Education

ENSURE FIT FOR

GROWTH

GROW AND

EXPAND

THE CORE

Digital products and

platforms


University Partnerships


Quality

Efficiency

Growth

Metric 2020 Target

Current status

Change Comments

Pass rates 84%1-

Target maintained – Learning & Teaching progress driving improvements

Retention 90%1-

Target maintained – Learning & Teaching progress driving improvements

Group EBITDA margin 17% (1%)Impacted by lower growth in SAE (particularly US), UP US

immigration changes and VET FEE help

SAE EBITDA margin 20% - Target maintained - discontinued SAE USA supports higher margin

Maintenance capex $20m - Target maintained - excludes new Transformation Partner investment

Revenue CAGR 5%2 - Target maintained – outperformance constrained by current immigration pressures

Full time enrolment

CAGR1

5% - Target maintained – excludes upside from planned S&M initiatives

New university partners 6 by 2020 +1 Target increased reflecting confidence in Business Development pipleline

2020 target KPIs – growing our core

Notes: 1. University Partnerships Division only; 2. Based on constant currency and CAGR calculated assuming AMEP revenue reduction excluded from FY17 to FY20. This reduces to 3% CAGR against FY17 Group revenue if AMEP revenue is included.


1

2

3

GROW THE CORE

Question &

Answers

Page

52

Appendix

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ACAP – Australian College of Applied Psychology

AMEP – Adult Migrant English Program

ASAM – Australian School of Applied Management

ASX – Australian Securities Exchange

CAGR – Cumulative Annual Growth rate

Capex - Capital Expenditure

CCEL – Christchurch College of English Language

C&I – Careers and Industry

CPS – Cents Per Share

EBITDA – Earnings Before Interest, Tax, Depreciation and Amortisation

ECC – Edith Cowan College

ELICOS – English Language Intensive Courses for Overseas Students

HE – Higher Education

HSA – Health SkillsAustralia

FY18 – Financial Year 2018

FX – Foreign Exchange

GSA – Germany SwitzerlandAustria

KPI – Key Performance Indicator

NPAT – Net Profit After Tax

NESLI – National Excellence in School Leadership Initiative

PCP – Prior Corresponding Period

PEP – Professional and English Programs

PG – post graduate

ROW – Rest of World

SAE – School of Audio Engineering, now known as SAE

SSVF – Simplified Student Visa Framework

SWEU – South West Europe

TEQSA – Tertiary Education Quality Standards Agency

T&L – Teaching and Learning

UG – Under graduate

UP – University Partnerships

VET – Vocational Education and Training

VSL – VET Student Loan

WACC – Weighted Average Cost of Capital

WIL – Work Integrated Learning

Glossary


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